Call for national petrol inquiry

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The NSW government has backed calls for a national inquiry into
the skyrocketing price of petrol and its impact on families.

The call comes as Victorian Nationals leader, Peter Ryan,
yesterday accused the State Government of pocketing a GST windfall
profit every time the fuel price went up.

NSW Transport Minister John Watkins said today there was a lack
of understanding in Canberra about the problem.

"Families across the state are being slugged every time they
fill up," Mr Watkins said in a statement.

"The impact on their budgets just to get around - to work, to
the kid's school, to sporting or entertainment events - it's just
unsustainable."

The federal government needed to ask where petrol profits were
going, Mr Watkins said.

The government itself also collected on the deal, he added, with
two taxes, fuel excise and the GST, tacked on to the cost of
petrol.

PM rejects excise cut

Prime Minister John Howard refuses to cut fuel excise despite
thy record world oil prices pushing petrol to almost $1.40 a
litre.

Motorists in Sydney, Melbourne and Canberra paid as much as
139.9 cents a litre yesterday, while prices have reached 137.9
cents in Perth and 134 cents in Adelaide.

And they could continue to rise as the devastating effects of
Hurricane Katrina on oil markets hit home.

But Mr Howard said yesterday that cutting the excise by enough
to make a difference would cost the government billions of
dollars.

"I'm sorry, and I know this is not a popular thing to say, and I
know people are hurting, but the fact is, to have any appreciable
impact on the price, you're looking at billions and billions," Mr
Howard said.

In parliament Mr Ryan challenged the state government to return
some of that bonus to Victorian drivers struggling with record fuel
prices.

In a statement earlier, Mr Ryan said the state government's
share of GST revenue on petrol prices was close to $420 million a
year.

Every 10 cent rise in fuel delivered another $35 million in
revenue to the treasury, he said.

"It is receiving a windfall profit every time the fuel price
goes up.

"Some of it should be rebated back to motorists to relieve the
financial pressure on families throughout Victoria."

Bracks hits back

Premier Steve Bracks hit back at Mr Ryan's proposal during
parliamentary Question Time saying the federal government itself
imposed the greatest tax on petrol through a 37 cent per litre
excise.

Mr Bracks said petrol prices in Australia rose according to the
global price for petrol.

"The GST is on total consumption," he said.

"GST is on petrol but it's on other goods as well.

"So if people spend more on petrol but less on other goods the
total GST take is much the same.

"These are not my words, these are the words of the Prime
Minister answering that very question."

Earlier, Mr Ryan said country Victorians were hit worse by the
record prices with regional fuel prices well in excess of city
prices.

"If people are forced to reduce travel to visit family and
friends or attend social and sporting functions it will add to the
isolation of rural families and have significant social and health
impacts.

"At least in the city there is a heavily taxpayer subsidised
transport system which provides alternatives for the travelling
public."